Policy Update
Ameya Satam
Background
Nations worldwide are transitioning rapidly from fossil fuels to clean energy sources as global energy policies are changing. Uranium is one of those clean energy sources that is getting a lot of demand on the international level to replace fossil fuels. Uranium is seen as a fuel source that has the capability to replace coal or gas. It is widely used for producing electricity as a more efficient source than coal and gas, which emit CO₂. Currently, through uranium, around 9% of the world’s electricity is produced (World Nuclear Association, 2026).
Countries like Armenia, Belarus, Belgium, Bulgaria, the Czech Republic, Finland, Hungary, Slovakia, Slovenia, South Korea and Ukraine get 30% or more of their electricity generated through uranium, while 70 % of the electricity in France is generated through it (World Nuclear Association, 2026).
To match this global transition and expand its clean energy footprint, India has set a target of installing the nuclear power capacity of 100 GW by the year 2047, which is 8.78 GW at the present time (Rani, 2026). In India, uranium is available, but in limited quantities, and it is of low quality.
Therefore, to expand the nuclear power capacity and to increase electricity generation potential, India and Australia signed the uranium deal on 9 July 2026, in which it was declared that Australia will export uranium to India for the purpose of using it in the nuclear energy industry. The bilateral Nuclear Cooperation Agreement, which was implemented in 2015, is the key to this pact, as this agreement allows Australia to export uranium to India.
Importance of the Uranium Deal
The deal is arranged in such a manner that it will guarantee the long-term supply of uranium to India. This will support India in being more reliant on non-fossil fuels, along with helping Australia to extend its market in the non-fossil fuel resources sector. Australia would benefit by earning through exports, while India would benefit through the long-term availability of uranium supplies. The world’s largest uranium reserves are located in Australia, and it is estimated to hold around 28% of the world’s total (Nath, 2026).
Electric power is mostly generated through coal in India, while renewable sources like solar and wind are also emerging as major players, but their availability is dependent on the weather, which restricts their capability to generate continuous electric power. As an alternative to this, nuclear energy can provide continuous, low-carbon electricity generation, for which continuous supplies of uranium are a major requirement of India, through which Australia will play a crucial role.
This agreement eases India’s road towards obtaining the target of net-zero emissions by 2070. The uranium supplies will also support India in the long-term three-stage nuclear programme, which will take some decades to complete. The deal helps resolve long-standing fuel supply bottlenecks in India’s nuclear program. By 2031-32, it is estimated that several Pressurised Heavy Water Reactors (PHWRs) and Light Water Reactors (LWRs) will be created, which will eventually increase the capacity of electricity production to 22 GW, requiring the supply of uranium to reach this estimated figure.
Achieving the goals of providing clean electricity to about 60 million homes every year by 2047 will become easier as Australia’s supplies of uranium will be able to fulfill the need (Rani, 2026). By 2033, India is expected to have its own India-made Small Modular Reactors (SMRs), which will need uranium to run.
With a guaranteed, long-term uranium supply now in sight, major industrial conglomerates—including Adani, Reliance, Tata, JSW, Jindal, and Bajaj—have expressed serious interest in building nuclear power plants. This suggests that these fuel supplies also ensure investments of the Indian private sector in the nuclear sector, as there is a certainty of the constant supply of raw material for electricity production. The SHANTI Act (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act), 2025, along with this deal, both support the private sector to invest in the nuclear sector, which may boost the speed in achieving the targets in the sector.
This is the best opportunity for Australia to strengthen its strategic and energy partnership with India, which is a rapidly growing energy market in the world. Australia also sees it as an economic opportunity. The current ongoing energy crisis is the perfect circumstance, which has been noted by India and Australia, as various countries are trying to transition from fossil fuels to clean energy sources. Various climate-efficient products like electric vehicles, metros, etc., are dependent on electricity, which can be produced through uranium.
India’s artificial intelligence and data centre industries are growing gradually which demand electric supply continuously and in large capacities. While India can meet these rising power demands with its current energy mix, doing so without nuclear power would derail its decarbonization targets. Therefore, the uranium exports from Australia can help India to fulfill the required demands and help India in decarbonization.
Challenges that can Affect the Deal
India is not a Nuclear Non-Proliferation Treaty (NPT) signatory, and India also possesses about 190 nuclear weapons, which is the main challenge in front of India, as it does not favour sharing uranium with the non-signatory countries of the NPT (Anderson, 2026). As a signatory of the NPT, it assures that the uranium will be used for peaceful purposes. Though Australia has shown trust in India’s promise to use the uranium only for peaceful purposes, it is now a serious responsibility of India to maintain this trust.
Even a single negligence can impact Australia’s trust in India, and both countries will also have to face the world. India will always have to keep the imported uranium separate and away from the Indian military nuclear programs.
The Australian government does not hinder uranium mining, but various states restrict full-scale mining, which may limit the speed and quantities of supplies to India. For uranium mining, Australia will have to work on creating new uranium mines for India, as the current four mining sites can’t be exploited further for India. Australian miners are also concerned about the capital gains tax charged by the Australian government, as it obstructs investment in new mining sites for exploration.
The miners have requested to treat their investments as important as the investments of the tech industry because they would invest a lot of capital in exploring, and there is no guarantee of successful outcomes. Complex permitting, high capital requirements and ever-changing political landscapes are already the existing hurdles for the miners to invest in new mining sites.
Furthermore, India is one of the fastest-growing economies, and along with it, the country’s requirements will eventually increase, which may require more uranium mining sites to meet its requirements. It will be a great challenge for Australia in the long run to maintain everything at once. Plus, radioactive waste management is also an issue for Australia, as processing the nuclear resources creates radioactive waste on the mining site.
Citizens of Australia have always opposed mining projects due to radioactive waste management issues. Mining more nuclear resources will generate more radioactive waste, which may face opposition from the people if the government fails to take care of it. The prices of uranium are uncertain as the ongoing energy crisis due to the conflict at the Strait of Hormuz is continuously going on. Prices have been increasing since February 2025, which may affect India’s purchases. Earlier in 2025, the prices were above $63, while in February 2025, it was recorded at $94 (Hunt & Singh, 2026).
Way Forward
Australia sees India as an important and reliable energy partner because India is the 4th largest source for Australia to purchase refined petroleum. Australia has expressed its care for India’s energy security and stability through agreeing to provide uranium. This highlights that both countries are playing an important role in the energy sector, which guarantees that this partnership will last long, and it would be very difficult to have strains.
This strong partnership can also influence the QUAD group’s decisions in the energy sector, which can change the geopolitics of the Indo-Pacific, as Australia can export uranium to other countries, while India can help other countries to develop nuclear reactors and infrastructure for electricity production. The future of energy security in electricity is also secured through the strengthening of uranium supply chains in India. All these actions taken by India and Australia are in favour of the future of climate resilience.
There are some areas where India and Australia will have to work on the domestic and international levels. It is necessary for India to prevent any kind of negligence while importing uranium from Australia; the uranium should reach in the Indian nuclear power plants only and not the black market. Checking the capabilities of the Indian private firms before giving them uranium to use in their nuclear reactors should be a necessary step to ensure radioactive waste management and safety measures.
India will have to maintain its pace in the development of nuclear infrastructures, as it would allow the utilization of uranium in its total capacity. It is important for Australia to resolve their policy issues with their miners, so that they can invest in new mining sites and export the uranium to India. While mining on the new sites, Australia will need to take care of the radioactive waste generated, as this issue may affect the supplies of uranium to India if protests from the locals near the site or closures occur.
With all these arrangements, the goals of ‘Viksit Bharat 2047’ & ‘Net Zero by 2070’ seem to be possible to accomplish in the projected time. Australia and India both have the required potential to support each other in attaining their goals. The right steps at the right time by both countries will ensure positive results in the uranium deal, and this deal will play a crucial role in the future of nuclear energy in India.
References
- Burton, M., & Mukherjee, H. (2026, July 9). India’s Modi to meet Australia’s Albanese with uranium, defence agenda. Reuters. https://www.reuters.com/world/asia-pacific/indias-modi-meet-australias-albanese-with-uranium-defence-agenda-2026-07-08/
- Laskar, R. H. (2026, July 10). India and Australia seal major uranium deal, elevate Indo-Pacific defence. Hindustan Times. https://www.hindustantimes.com/india-news/india-australia-finalise-landmark-uranium-deal-deepen-defence-cooperation-101783603850761.html
- Rani, M. (Ed.). (2026, July 10). Australia-India uranium deal explained. CNBC-TV18. https://www.cnbctv18.com/energy/australia-india-uranium-deal-explained-19941866.htm
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- Vaid, D. (2026, July 9). India news: Modi clinches uranium supply deal with Australia. Deutsche Welle. https://www.dw.com/en/india-news-modi-clinches-uranium-supply-deal-with-australia/live-77883412
- Albanese, A., Bowen, C., & King, M. (2026, July 9). Collaborating with India on energy and resources [Media release]. Prime Minister of Australia. https://www.pm.gov.au/media/collaborating-india-energy-and-resources
- Nath, S. (Ed.). (2026, July 9). How Australian uranium can fuel India’s clean energy plans. NDTV. https://www.ndtv.com/world-news/how-australian-uranium-can-fuel-indias-clean-energy-plans-11748296
- Read, M. (2026, July 9). India and Australia strike deal to boost nuclear exports. The Australian Financial Review. https://ww;w.afr.com/policy/foreign-affairs/india-and-australia-strike-deal-to-boost-nuclear-exports-20260709-p60e0g
- Bagla, P. (2026, July 9). Why India’s uranium deal with Australia could transform its nuclear future. NDTV. https://www.ndtv.com/india-news/why-indias-uranium-deal-with-australia-could-transform-its-nuclear-future-11750169
- Knott, M. (2026, July 9). India and Australia look to fast-track sweeping free trade pact after uranium export deal. The Age. https://www.theage.com.au/politics/federal/india-and-australia-look-to-fast-track-sweeping-free-trade-pact-after-uranium-export-deal-20260709-p60e0c.html
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- Hunt, P.-A., & Singh, R. K. (2026, July 9). Australia agrees to sell uranium to India during Modi visit. Financial Post. https://financialpost.com/pmn/business-pmn/australia-agrees-to-sell-uranium-to-india-during-modi-visit
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- World Nuclear Association. (2026, January 20). What is uranium? How does it work? https://world-nuclear.org/information-library/nuclear-fuel-cycle/introduction/what-is-uranium-how-does-it-work
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- Das, M. (2025, May 15). India imported nuclear reactor parts worth $311 from Turkey in FY 24: Special trade report. News18. https://www.news18.com/india/india-imported-nuclear-reactor-parts-worth-311-from-turkey-in-fy-24-special-trade-report-ws-l-9339146.html
About the Contributor
Ameya Satam is a Research & Editorial Intern at IMPRI specializing in International Relations and Strategic Studies. He completed his post-graduation in International Relations at Sikkim University, focusing on Indo-Pacific geopolitics and India–US cooperation, and is dedicated to analyzing regional security frameworks to inform evidence-based policy discourse.
Acknowledgement
I would like to extend my sincere gratitude to Mr. Kavin Adithya CB, Ms.Vinita Sharma and IMPRI India for their guidance and support.
Reviewers
Mr. Kavin Adithya CB and Ms.Vinita Sharma
Disclaimer
All views expressed in the article belong solely to the author and not necessarily to the organization.
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